Aussie Broadband Ltd. (ABB) AI Stock Analysis

• Market Cap: AU$1.71B
• Dividend Yield: 1.27%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 52.2
• Beta (1Y): 0.90
• Revenue Growth: 18.74%
• EPS Growth: 14.89%
• Country: AU
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.06
• Shares Outstanding: 292,576,050
• 10 Day Avg. Volume: 1,354,314
• 30 Day Avg. Volume: 1,220,900
• PEG Ratio: 2.70
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -131.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$6.00
• Price Target Upside: 19.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$5.00 ▼(-0.40% Downside)

The overall stock score for Aussie Broadband Ltd. is primarily influenced by its strong financial performance, particularly in revenue growth and operational efficiency. However, the stock faces challenges with cash flow management and technical indicators suggest bearish momentum. The high P/E ratio raises concerns about overvaluation, while the dividend yield offers limited income potential. These factors collectively result in a moderate overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market penetration and customer acquisition strategies, supporting long-term business expansion.

Operational Efficiency

Strong operational efficiency suggests effective cost management and resource utilization, enhancing profitability and competitive positioning.

Balance Sheet Health

Improved leverage ratios demonstrate prudent financial management, ensuring stability and capacity for future investments.

Negative Factors

Cash Flow Management

Challenges in cash flow management can limit investment in growth opportunities and strain financial flexibility, affecting long-term sustainability.

Net Profit Margin

A low net profit margin indicates potential inefficiencies in cost control, which could hinder profitability and shareholder returns over time.

Free Cash Flow

Declining free cash flow suggests difficulties in generating sufficient cash from operations, which could impact the company's ability to fund future growth.

Aussie Broadband Ltd. Business Overview & Revenue Model

Company Description

Aussie Broadband Limited provides telecommunications services to residential and businesses in Australia. It operates in four segments: Residential, Business, Wholesale, and Over the Wire. The company offers national broadband network services, cloud, and security services. It also provides a range of other telecommunications services, including VoIP, mobile plans and headsets, and entertainment bundles to residential, small business, and large business/enterprise customers. As of June 30, 2022, it served approximately 462,369 customers. The company was incorporated in 2008 and is based in Morwell, Victoria.

How the Company Makes Money

Aussie Broadband generates revenue primarily through subscription fees from its broadband and mobile service offerings. The company operates on a direct-to-consumer model, selling various NBN plans that cater to different customer needs, which contributes significantly to its earnings. Additionally, ABB earns revenue from VoIP services and value-added services such as web hosting and security solutions. The company has established partnerships with network infrastructure providers to enhance its service delivery, which helps maintain competitive pricing and improve customer retention. Furthermore, ABB's commitment to customer service and its reputation for reliability contribute to a growing customer base, thereby driving revenue growth.

Aussie Broadband Ltd. Financial Statement Overview

Summary

Aussie Broadband Ltd. demonstrates strong revenue growth and operational efficiency, with healthy EBIT and EBITDA margins. The balance sheet is stable with improved leverage ratios. However, cash flow management is a concern, with negative free cash flow growth impacting overall financial health.

Income Statement

Aussie Broadband Ltd. has demonstrated consistent revenue growth over the years, with a notable 3.93% increase in the most recent year. The company maintains a strong gross profit margin of 100% due to its revenue recognition practices. However, the net profit margin remains modest at 2.77%, indicating room for improvement in cost management. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.47, indicating a balanced approach to leveraging. Return on equity is moderate at 6.02%, suggesting effective use of equity but with potential for higher returns. The equity ratio stands at 50.38%, showing a solid equity base relative to total assets.

Cash Flow

Aussie Broadband Ltd. faces challenges with free cash flow, which has declined significantly, resulting in a negative growth rate. The operating cash flow to net income ratio is 0.28, indicating that cash generation from operations is not fully covering net income. The negative free cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.19B	1.19B	999.75M	787.95M	546.94M	350.27M
Gross Profit	197.28M	1.19B	135.19M	104.93M	64.52M	49.38M
EBITDA	123.49M	139.90M	113.84M	98.60M	35.13M	5.66M
Net Income	32.84M	32.84M	26.38M	21.72M	5.32M	-4.49M
Balance Sheet
Total Assets	1.08B	1.08B	1.24B	693.59M	628.50M	116.91M
Cash, Cash Equivalents and Short-Term Investments	130.96M	130.96M	214.13M	76.17M	48.83M	57.02M
Total Debt	258.49M	258.49M	351.55M	204.00M	216.67M	10.56M
Total Liabilities	536.85M	536.85M	667.65M	401.81M	359.77M	57.37M
Stockholders Equity	545.34M	545.34M	570.10M	291.78M	268.72M	59.55M
Cash Flow
Free Cash Flow	22.78M	-8.69M	28.91M	67.58M	-4.68M	8.15M
Operating Cash Flow	68.40M	68.40M	120.22M	116.68M	37.79M	25.28M
Investing Cash Flow	18.67M	18.67M	-247.47M	-46.05M	-308.08M	-17.13M
Financing Cash Flow	-170.82M	-170.82M	266.21M	-43.30M	261.00M	27.42M

Aussie Broadband Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABB, the sentiment is Negative. The current price of 5.02 is below the 20-day moving average (MA) of 5.14, below the 50-day MA of 5.55, and above the 200-day MA of 4.63, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 37.35 is Neutral, neither overbought nor oversold. The STOCH value of 13.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ABB.

Aussie Broadband Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLS	64 Neutral	AU$55.00B	25.87	14.73%	3.90%	0.86%	34.23%
MAQ	62 Neutral	AU$1.73B	49.65	7.40%	―	1.75%	0.42%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SLC	55 Neutral	€1.56B	1,688.89	0.21%	―	31.16%	―
ABB	54 Neutral	AU$1.71B	52.19	5.89%	1.27%	18.74%	14.89%
TPG	54 Neutral	AU$7.28B	―	-0.93%	47.11%	-5.04%	-349.38%

Aussie Broadband Ltd. Corporate Events

Aussie Broadband Completes Significant Share Buy-Back

Aussie Broadband Ltd. has completed a buy-back of 9,024,191 of its ordinary fully paid securities, amounting to a total consideration of AUD 35,864,889.30. This move is part of the company’s strategic financial management, potentially enhancing shareholder value and reflecting confidence in its market position.

Aussie Broadband Announces Director’s Interest Change

Aussie Broadband Limited has announced a change in the director’s interest, with Graeme Barclay acquiring 15,758 FY26 NED Rights through the Non-Executive Director Fee Sacrifice Plan. This change reflects the company’s ongoing commitment to aligning director interests with company performance, potentially impacting stakeholder confidence positively.

Aussie Broadband Issues New Unquoted Equity Securities

Aussie Broadband Ltd. has announced the issuance of 15,758 unquoted equity securities under the ASX security code ABBAF, effective from October 27, 2025. This move could potentially impact the company’s financial structure and market positioning, offering insights into its strategic growth initiatives.

Aussie Broadband CFO Resigns Amid Strategic Transition

Aussie Broadband Limited announced the resignation of its Chief Financial Officer, Andy Giles Knopp, who will leave to pursue another opportunity in April 2026. Andy has been instrumental in the company’s financial strategy and development of the ‘Look to 28’ strategy. The company will begin the search for a new CFO to ensure a smooth transition, while continuing to focus on its three-year strategy and maintaining momentum across its core segments.

Patrick Greene Steps Down as Director of Aussie Broadband

Aussie Broadband Ltd. has announced that Patrick Greene has ceased to be a director of the company as of October 14, 2025. Greene held significant interests in the company through entities such as Panama Trial Pty Ltd and P M Greene Investments Pty Ltd, which collectively held over 10 million ordinary shares. This change in directorship may impact the company’s governance and stakeholder dynamics, given Greene’s substantial shareholding and influence.

Aussie Broadband Successfully Passes All AGM Resolutions

Aussie Broadband Ltd. announced that all ten resolutions proposed at its 2025 Annual General Meeting were successfully carried. This outcome reflects strong shareholder support and may positively impact the company’s governance and strategic initiatives, reinforcing its position in the telecommunications industry.

Aussie Broadband Issues Correction to AGM Notice

Aussie Broadband Limited has issued a correction to its Notice of the 2025 Annual General Meeting concerning the proposed grant of ZEPOs to Michael Omeros under the FY26 LTI Plan. The correction clarifies the EPS growth performance measure for the FY26 ZEPOs, which was previously misreferenced. This adjustment ensures accurate information is provided to shareholders, reflecting the company’s commitment to transparency and precision in its communications.

Aussie Broadband Announces 2025 Annual General Meeting

Aussie Broadband Limited has announced its 2025 Annual General Meeting, scheduled for October 14, 2025, to be held both in-person at the KPMG offices in Melbourne and virtually. This meeting is significant as it provides an opportunity for stakeholders to engage with the company’s strategic direction and operational updates, reflecting its ongoing growth and positioning in the telecommunications industry.